10 Overlooked Dividend Stocks to Buy Now

1. STERIS plc (NYSE:STE)

Number of Hedge Fund Holders: 48

STERIS plc (NYSE:STE) is an Ireland-based medical equipment company that specializes in sterilization and surgical products for the US healthcare system. The company is gaining traction among investors as healthcare systems rely on Steris’ products and services regardless of economic challenges, as they are essential for delivering care to patients. Since the start of 2025, the stock has surged by over 11%.

In fiscal Q3 2025, STERIS plc (NYSE:STE) posted revenue of $1.3 billion, down 1.8% from the same period last year. The company reported net income of $173.6 million, or $1.75 per diluted share, up from $148.4 million, or $1.49 per diluted share, in the same period of fiscal 2024. Healthcare revenue rose by 7% in the quarter, reaching $976.0 million, up from $916.2 million in the third quarter of fiscal 2024. This increase was driven by a 9% rise in consumable sales and a 13% boost in service revenue, partially offset by a 5% drop in capital equipment revenue.

For the first nine months of fiscal 2025, STERIS plc (NYSE:STE) reported a net cash from operations totaled $887.3 million, up from $718.5 million during the same period in fiscal 2024. Free cash flow also increased, reaching $588.1 million compared to $457.0 million in the previous year. It currently offers a quarterly dividend of $0.57 per share and has a dividend yield of 1.01%, as of April 25.

Overall, STERIS plc (NYSE:STE) ranks first on our list of the best overlooked dividend stocks to invest in. While we acknowledge the potential of STE as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than STE but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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